KUALA LUMPUR (Jan 27): Westports Holdings Bhd’s net profit for the fourth quarter ended Dec 31, 2021 rose 36% year-on-year (y-o-y) to RM222.88 million from RM163.49 million, due to higher container revenue and progressive insurance reimbursement for the vessel incident which damaged two ship-to-shore cranes and a berthing container vessel in 2019.

In a bourse filing on Thursday (Jan 27), the port operator said revenue for the quarter dipped 7% y-o-y to RM503.89 million from RM541.54 million previously, as container throughput was adversely affected by the massive flash flood in the Klang Valley late last year.

Earnings per share rose to 6.54 sen from 4.79 sen.

Westports declared a dividend of 9.28 sen per share totalling RM316.448 million to be paid on Feb 24.

On its prospects, Westports said it is projecting a low single-digit positive container throughput for 2022.

“The forecast nevertheless entails a cautionary note that the pandemic is still evolving, and regulatory responses abroad could indirectly affect the company’s throughput recovery trajectory,” it said.

In a separate statement, Westports said it handled a container throughput of 10.40 million TEUs (twenty-foot equivalent units) in 2021.

It said the year was characterised by challenging domestic economic conditions due to the cumulative effects of various movement restrictions since 2020.

Regional countries that imposed restrictions inadvertently contributed to the distressed global supply chain and port congestions.

Westports said it handled transhipment and gateway container throughput of 6.75 million and 3.65 million TEUs, respectively.

Despite expanding the total yard storage capacity, the terminal experienced occasional congestions, it said.

Westports group managing director Datuk Ruben Emir Gnanalingam Abdullah said given the external economic conditions and supply chain challenges, the company achieved a good level of profitability.

“However, one-off insurance recoveries in 2021 amplified the bottom line because we made the corresponding write-offs for the two-year-old incident,” he said.

Ruben said the December 2021 heavy rainfall caused severe flooding in certain areas of the Klang Valley, but there was no flooding within the terminal.

“All terminal operating equipment and essential facilities were unaffected.

“However, we will remain vigilant and ensure that the terminal’s operations remain unaffected by the growing risk of unusual weather events brought on by climate change,” he said.

At the midday break, Westports dropped three sen to RM3.90, valuing it at RM13.29 billion.